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DECREE

ON ROAD TRANSPORT BUSINESS AND BUSINESS CONDITIONS

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the November 13, 2008 Law on Road Traffic;

Pursuant to the November 26, 2003 Law on Cooperatives;

Pursuant to the June 14, 2005 Commercial Law;

Pursuant to the June 14, 2005 Law on Tourism;

Pursuant to the November 29, 2005 Law on Enterprises;

At the proposal of the Minister of Transport,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree provides for road transport business, business conditions and grant of business licenses.

Article 2. Subjects of application

This Decree applies to organizations and individuals doing or involved in road transport business in the territory of the Socialist Republic of Vietnam.

Article 3. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Business units means enterprises, cooperatives or households involved in road transport business.

2. Road transport business means the use of automobiles for passenger and cargo transport for fares or freight.

Chapter II

ROAD TRANSPORT BUSINESS

Article 4. Passenger transport on fixed routes

1. Passenger transport on fixed routes with identified terminals of departure and arrival under appropriate timetables and itineraries registered by enterprises and approved by route management agencies.

2. Fixed routes of passenger transport include inter-provincial routes and intra-provincial routes. An inter-provincial route covers a distance of 300 kilometers or longer, departs from and arrives at terminals of grade 4 (four) or higher.

3. Management of routes covers:

a/ Monitoring and summing up the number and travel demand of passengers on routes; activities of enterprises and cooperatives on routes;

b/ Formulating plannings on route networks and announcing routes;

c/ Approving the opening of routes, termination of route operation and exploitation, addition or suspension of operation of means of transport.

4. Route exploitation

a/ Enterprises and cooperatives may register for the exploitation of announced routes;

b/ Enterprises and cooperatives may register for the opening of new routes. Trial exploitation may last 6 (six) months; upon termination of the trial exploitation duration, enterprises and cooperatives shall report thereon to route management agencies for route announcement;

c/ Only enterprises and cooperatives already engaged in trial exploitation may continue with the exploitation for 12 (twelve) months following the time of route announcement;

d/ Route management agencies shall decide to increase the number of enterprises operating on a route when the average coefficient of passengers (departing from the terminal) on the route reaches over 50%; to increase the number of means of transport of operating enterprises when the average coefficient of passengers (departing from the terminal) on the route reaches over 50%.

5. The Ministry of Transport shall provide for the announcement and organization of management of fixed passenger transport routes in line with their distance and scope of operation.

Article 5. Passenger transport by bus

1. Passenger transport by bus on fixed routes with stops for passenger embarkation and disembarkation and buses running according to operation charts within a city or town, a province or two adjacent provinces. If a starting or ending point of an adjacent bus route is in an urban center of special grade, the route must not run beyond 3 provinces and/or cities, covering a distance not exceeding 60 (sixty) km.

a/ Operation chart: The maximum frequency will be 30 minutes/trip, for intra-municipal and intra-town routes, and 45 minutes/trip, for other routes;

b/ The maximum distance between two successive intra-municipal or intra-town bus stops is 700 m and between two suburban bus stops is 3,000 m.

2. People's Committees of provinces or centrally run cities (below referred to as provincial-level People's Committees) shall promulgate plannings on route networks, construct and manage infrastructure facilities for bus operation, announce routes, fare rates and the State's incentive policies on passenger transport by bus in their localities.

Article 6. Passenger transport by taxi

1. Passenger transport by taxi is made with itineraries and schedules requested by passengers; fares are calculated according to taxi meters based on the number of kilometers of travel and the waiting duration.

2. Taxis must be affixed on their tops with the "TAXI" light box, which shall be switched on when the cabs have no passengers and switched off when the cabs carry passengers.

3. Provincial-level People's Committees shall organize and manage public taxi parking lots.

Article 7. Passenger transport under contracts

1. Passenger transport under contracts means the transport of passengers with itineraries and time requested by passengers, which is carried out under written contracts.

2. Cars must operate under contracts clearly stating the number of passengers. If cars transport passengers for a distance of 100 km or longer, a list of passengers is required. It is forbidden to pick up passengers outside the list enclosed with the contract and forbidden to sell tickets to passengers onboard.

Article 8. Road transport of tourists

1. Road transport of tourists means the transport of passengers according to tourist routes, programs and sites.

2. When transporting tourists, drivers shall carry along contracts on transport of tourists or tour contracts (originals or copies certified by tourist business units), tourist programs and lists of tourists. It is forbidden to pick up passengers outside the lists and forbidden to sell tickets to passengers onboard.

Article 9. Cargo transport

1. For transport of ordinary cargoes (excluding taxi trucks), when transporting cargoes en route, drivers shall carry along transport contracts or papers.

2. Cargo transport by taxi trucks

a/ Cargo transport by taxi trucks means the use of automobiles of a tonnage of under 1,500 kg for cargo transport for freights calculated according to taxi meters based on the number of kilometers of travel;

b/ Both sides or doors of trucks must be painted with "TAXI TRUCK," telephone numbers and names of business units.

3. Transport of extra-long or extra-heavy cargoes

a/ Transport of extra-long or extra-heavy cargoes means the use of proper automobiles for transport of extra-long or extra-heavy cargoes;

b/ When in operation, drivers shall carry along road use permits;

c/ Business units shall bear expenses for consolidation of road bridges (if any) at the request of road management agencies.

4. The transport of dangerous goods must comply with the Government's Decree prescribing the list of dangerous goods, the transport of dangerous goods and competence to grant permits for transport of dangerous goods.

Article 10. Limit of liabilities of cargo transport businesses to compensate for damaged, lost or deficient cargoes

1. The compensation for damaged, lost or deficient cargoes shall be made under transport contracts or agreements between transport businesses and transport hirers.

2. If transport contracts do not contain agreement on compensation for cargoes which are damaged, lost or deficient due to the fault of transport businesses, the compensation level must not exceed VND 20,000 per kilogram of lost cargo, for unpackaged cargoes, or VND 7,000,000 per lost package or bale, for packaged cargoes.

Chapter III

ROAD TRANSPORT CONDITIONS

Article 11. General conditions for road transport

1. Business units must fully meet the following conditions:

2. To register for road transport according to law.

3. To ensure the quantity, quality and life of means of transport suitable to types of business:

a/ Having a business plan ensuring the time for performance of itineraries, the time for maintenance and repair to maintain the technical conditions of vehicles;

b/ Having an adequate number of means of transport under their ownership or lawful rights to use vehicles on financial lease of financial leasing organizations or hired vehicles of organizations or individuals with the property leasing function under law.

If registered vehicles are under cooperative members' ownership, the economic commitments between cooperative members and their cooperatives are required, prescribing the rights, liabilities and obligations of cooperatives to manage and use automobiles under the ownership of cooperative members.

The quantity of means must suit the business plan.

c/ The means of transport remain in the prescribed life time;

d/ They must go through technical safety and environmental protection inspection under regulations.

3. Means of transport must have itinerary supervision devices as provided for in Article 12 of this Decree.

4. Drivers and attendants:

a/ Drivers and attendants must possess written labor contracts signed with business units; drivers must not be persons being in the period of professional practice ban under law; taxi drivers, bus drivers and attendants must be trained and instructed in passenger transport and traffic safety under regulations of the Ministry of Transport.

b/ Business units shall arrange adequate drivers and attendants in conformity with their business plans and regulations; passenger cars of 30 or more seats must have attendants onboard.

5. Persons directly administering transport activities of enterprises or cooperatives (who hold any of the following posts: director, deputy director, cooperative manager or deputy manager, head of transport administration section) must fully satisfy the following conditions:

a/ Possessing the professional qualifications of intermediate level in transport or a collegial or university degree in other disciplines;

b/ Having participated in transport management at road transport enterprises or cooperatives for 3 (three) years or more;

c/ Having adequate necessary time with proof for direct administration of transport activities.

6. Car parks:

a/ Transport units shall arrange adequate areas for car parking in accordance with their respective business plans;

b/ Units' car parking areas may belong to their ownership or be rented under contracts:

c/ Car parking places must meet the requirements on traffic order and safety, fire and explosion prevention and fighting and on environmental sanitation.

7. Enterprises and cooperatives engaged in passenger transport on fixed routes, by bus or taxi must satisfy the following additional conditions:

a/ Being organized with sections for management of traffic safety conditions;

b/ Registering the passenger transport service quality with route management agencies, including the quality of means of transport; the professional qualifications of service attendants; plans on transport organization; benefits of passengers; services provided for passengers during journeys: and commitment to ensure service quality.

Article 12. Devices for vehicle itinerary supervision

1. Units engaged in passenger transport by car on fixed routes, by bus. in passenger transport under contracts, in transport of tourists and cargo container transport must install devices to supervise vehicle itineraries and maintain their good technical conditions.

2. Vehicle itinerary supervision devices must satisfy the following minimum requirements:

a/ To store information on itineraries, speeds, the number and duration of stops, door openings or closings, and the driving time;

b/ Information from vehicle itinerary supervision devices will be used as documents for management of transport units' activities and supplied to competent state management agencies upon request.

3. Schedule for installation of itinerary supervision devices:

a/ By July 1, 2011, passenger cars on fixed routes of 500 km or more, tourists transport cars and cargo container trucks must be installed with itinerary supervision devices;

b/ By January 1, 2012, passenger cars on fixed routes of 300 km or more, buses and contracted passenger cars must be installed with itinerary supervision devices;

c/ By July 1, 2012, the vehicles defined in Clause 1 of this Article must be installed with itinerary supervision devices.

Article 13. Conditions for passenger transport on fixed routes

1. All the conditions specified in Article 11 of this Decree.

2. The life of cars of 10 seats or more (including driver's) must not exceed:

a/ For a distance of over 300 km: 15 years, for cars manufactured for passenger transport: 12 years, for cars converted from vehicles of other types into passenger cars before January 1, 2002.

b/ For a distance of 300 km or less: 20 years, for cars manufactured for passenger transport; 17 years, for cars converted from vehicles of other types into passenger cars before January 1, 2002.

Article 14. Conditions for passenger transport by bus

1. All the conditions defined in Article 11 of this Decree.

2. Buses must contain 17 seats or more and flooring space for standing passengers, and be designed in accordance with the standards set by the Ministry of Transport.

3. Buses must be within the useful life specified at Point b. Clause 2. Article 13 of this Decree; and be painted in colors registered with the route management agencies.

Article 15. Conditions for passenger transport by taxi

1. All the conditions defined in Article 11 of this Decree.

2. Taxis must each contain 9 seats or less (including driver's).

3. The useful life of taxis must not exceed 12 years.

4. Taxis must be installed with meters for fare calculation by kilometers traveled and waiting duration, which are inspected and lead-sealed by a competent agency; and be painted in registered uniform colors and with logos of enterprises or cooperatives and telephone numbers.

5. Enterprises or cooperatives must have control centers, register radio frequencies and have equipment for communications between centers and taxis.

Article 16. Conditions for passenger transport by contracted cars and tourist cars

1. All the conditions defined in Article 11 of this Decree.

2. The useful life of contracted cars must comply with Point b, Clause 2, Article 13 of this Decree.

3. The useful life of tourist cars must not exceed 10 years.

4. Apart from the provisions of this Decree, tourist transport must also comply with relevant legal provisions on tourism.

Article 17. Conditions for cargo container transport business

Only enterprises or cooperatives fully meeting the conditions defined in Article 11 of this Decree can conduct cargo container transport business.

Chapter IV

GRANT OF ROAD TRANSPORT BUSINESS LICENSES

Article 18. Licensees and details of road transport business licenses (licenses)

1. Licensees: Units conducting passenger transport or cargo container transport business.

2. Details of a license include:

a/ Name and address of business unit;

b/ Business registration certificate (serial number, date of issue, issuing agency);

c/ Lawful representative;

d/ Type of business;

e/ Validity of the license;

f/ Licensing agency.

3. A license is valid for 7 years.

4. Means for passenger transport on fixed routes, passenger transport under contracts, or passenger transport by taxi must be affixed with insignias. Means for tourist transport must be affixed with signboards.

5. The Ministry of Transport shall specify the management, competent licensing agencies, forms of licenses, and forms and validity of insignias and signboards.

Article 19. Dossiers of application for licenses

1. For enterprises and cooperatives:

a/ An application for a license (or application for change of the details of the license), made according to a form promulgated by the Ministry of Transport;

b/ A valid copy of the business registration certificate;

c/ A valid copy of the car-parking land use right certificate or the car-parking land leasing contract;

d/ Valid copies of diplomas and certificates of persons directly administering the transportation;

e/ The business plan;

f/ The list of vehicles, enclosed with copies of vehicle registration papers (or valid copies of the financial leasing contract: property leasing contract; economic commitment, for cases defined at Point b. Clause 2, Article 11 of this Decree) and technical safety and environmental protection certificates;

g/ For enterprises and cooperatives doing business in passenger transport on fixed routes, by bus or by taxi, apart from the documents specified at Points a, b, c and d, Clause 1, Article 19, the documents defining the functions and tasks of the traffic safety- monitoring sections, transport service quality registration dossiers (units which have applied the ISO standard-based quality management system shall submit copies of the relevant certificates), the contract on and test record of the installation of vehicle itinerary supervision devices (except taxis) are additionally required.

For enterprises and cooperatives doing business in passenger transport by taxi, the dossier on the installation of equipment for communications between control centers and taxis, which have registered for radio frequency use with a competent agency, are additionally required.

For enterprises and cooperatives doing business in cargo container transport, the document defining the functions and tasks of the traffic safety monitoring section, the contract on and test record of the installation of vehicle itinerary supervision devices are additionally required.

2. For business households:

a/ An application for a license (or application for change of the details of the license), made according to a form promulgated by the Ministry of Transport;

b/ A valid copy of the business registration certificate:

c/ A valid copy of the car-parking land use right certificate or the car-parking land leasing contract:

d/ The list of vehicles, enclosed with the copies of vehicle registration papers (or valid copy of the property leasing contract as defined at Point b. Clause 2. Article 11 of this Decree), and technical safety and environmental protection certificates;

e/ The test record of the installation of vehicle itinerary supervision devices.

Article 20. Receipt and appraisal of dossiers and grant of licenses

1. Receipt of dossiers

a/ Dossiers of application for licenses may be sent by mail or submitted in person by representatives of business units to licensing agencies, which will receive the dossiers and issue receipts to the submitters;

b/ If the dossiers received by mail are incomplete or invalid, the licensing agencies shall clearly notify the contents to be supplemented or modified within 5 working days after the receipt thereof; for dossiers directly received, the dossier recipients shall check them and clearly notify the submitters of contents to be supplemented or modified.

2. Within 15 working days after the receipt of complete and valid dossiers, the licensing agencies shall appraise the dossiers and grant licenses. If refusing to grant licenses, they shall give written replies clearly stating the reasons.

3. In case of change of business conditions related to the details of their licenses, business units shall submit dossiers of application for such change for the re-grant of licenses.

Article 21. Revocation of licenses

1. Business units may have their licenses revoked in any of the following circumstances:

a/ Breaching the business conditions, seriously affecting the transport service quality and safety;

b/ Being detected to have deliberately inserted falsified information into the dossiers of application for licenses;

c/ Failing to conduct transport business within 6 months after obtaining the license or ceasing transport business for 6 consecutive months;

d/ Conducting business in contravention of the details of the licenses;

e/ Going bankrupt or being dissolved.

2. The licensing agencies shall revoke the licenses they have issued. After the issuance of decisions on withdrawal of licenses, the licenses will become invalid and the business units shall return them to the agencies which have issued them.

Chapter V

STATE MANAGEMENT RESPONSIBILITIES

Article 22. The Ministry of Transport

1. To perform the unified management of road transport activities under this Decree.

2. To promulgate regulations on technical properties and organize the inspection of vehicle itinerary supervision devices.

3. To direct, guide and organize the implementation of this Decree.

4. To inspect and examine the implementation of regulations on road transport business and business conditions under this Decree and other relevant laws.

Article 23. The Ministry of Finance

To assume the prime responsibility for, and coordinate with the Ministry of Transport in, guiding the collection of fares, freight and fees related to road transport activities and road transport support services.

Article 24. The Ministry of Culture, Sports and Tourism

To assume the prime responsibility for, and coordinate with the Ministry of Transport in. guiding the management of road transport of tourists under this Decree and other relevant laws.

Article 25. The Ministry of Science and Technology

1. To coordinate with the Ministry of Transport in defining the technical properties of vehicle itinerary supervision devices.

2. To organize the inspection of taxi meters.

Article 26. The Ministry of Information and Communications

To assume the prime responsibility for, and coordinate with the Ministry of Transport in, guiding the management of the use of radio frequencies and vehicle itinerary supervision devices.

Article 27. Provincial-level People's Committees

1. To direct local functional agencies in the management of road transport activities under this Decree and relevant laws.

2. To provide for the levels, collection and use of fees for the grant of road transport licenses and other fares, charges and fees related to road transport activities and road transport support services under the Ministry of Finance's guidance.

Chapter VI

ORGANIZATION OF IMPLEMENTATION AND IMPLEMENTATION PROVISIONS

Article 28. Examination of the implementation of business conditions by business units

1. Transport business units are subject to the examination of the observance of road transport and condition regulations of competent agencies.

2. Forms of examination:

a/ Annual examination;

b/ Extraordinary examination upon complaint, denunciation or detection of signs of disobeying regulations on road transport business and business conditions.

3. The Minister of Transport and chairpersons of provincial-level People's Committees shall direct functional agencies to organize the examination of the observance of business conditions by business units.

Article 29. Effect

1. This Decree takes effect on December 15, 2009, and replaces the Government's Decree No. 110/2006/ND-CP of September 28, 2006, on road transport conditions.

2. Buses operating before the effective date of this Decree but failing to meet the requirements defined in Clause 3, Article 14 of this Decree may operate until the end of their prescribed life.

3. Business units defined in Clause 1, Article 18 of this Decree which do business in road transport before the effective date of this Decree must complete the procedures for obtaining licenses before July 1, 2010.

Article 30. Implementation responsibilities

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People's Committees, and concerned enterprises and individuals shall implement this Decree.